Riyadh, December 10, 2024 – In a major move to boost Saudi Arabia’s hospitality sector, the Public Investment Fund (PIF) announced today the launch of Adeera, a new hospitality management company designed to oversee and operate a portfolio of hotels across the Kingdom. This initiative aims to blend world-class industry standards with the unique, rich traditions of Saudi hospitality, creating an authentic and unparalleled experience for visitors.
Adeera, which is a wholly owned subsidiary of PIF, will serve as a national leader in the Kingdom's hospitality sector. Its primary goal is to drive the development of new, world-class Saudi hotel brands that will cater to a wide variety of customer segments, ranging from mid-range accommodations to ultra-luxury properties. In addition, Adeera will contribute to strengthening the local hospitality workforce by launching training and skills development programs in partnership with leading international hospitality experts, fostering local talent and expertise within the industry.
The announcement aligns with Saudi Arabia’s broader vision to establish itself as a premier global tourism destination, as laid out in the Kingdom's National Tourism Strategy. The strategy aims to attract 150 million visitors by 2030 and have the tourism sector contribute 10% of the nation’s GDP. As part of this vision, Adeera will introduce a diverse range of Saudi hotel brands, each designed to meet the specific needs of different traveler groups, whether they seek budget-friendly accommodations or luxurious experiences. The company will also focus on creating new business opportunities by fostering collaborations with hotel developers and maximizing the involvement of the local private sector, thus enhancing the Kingdom’s tourism and hospitality infrastructure.
Khalid Johar, Co-head of the Local Real Estate Portfolio at PIF, emphasized the importance of Adeera’s launch, stating, “The launch of Adeera comes at a pivotal time when Saudi Arabia is expanding its hospitality and tourism offerings. The company has the opportunity to grow the sector by introducing new hotel brands as the country is establishing itself as a major tourism destination. Adeera's unique focus on Saudi culture and traditions will provide a distinctive edge.”
This announcement marks the latest in a series of strategic investments by PIF in the tourism and real estate sectors, reinforcing the fund’s role as a key enabler in driving economic growth and diversification in line with Saudi Arabia’s Vision 2030. Other significant PIF investments include the Boutique Group, which specializes in transforming historic and cultural palaces into luxury boutique hotels, the agritourism company Dan, and the tourism investment company Asfar.
The establishment of Adeera is not only a significant step in the development of Saudi Arabia’s hospitality landscape but also reflects the Kingdom’s commitment to integrating its rich cultural heritage with modern tourism experiences. By merging top-tier international standards with authentic Saudi traditions, Adeera aims to provide visitors with a truly unique experience that highlights the Kingdom’s growing prominence as a global tourism hub. With the launch of this hospitality management company, PIF is poised to make a lasting impact on the tourism sector, contributing to Saudi Arabia’s broader goal of diversifying its economy and positioning itself as a leading destination for international travelers in the years to come.